How much was offered at the bond auction? Sensitive questions over ‘advanced knowledge’

How much was offered at the bond auction? Sensitive questions over ‘advanced knowledge’

Written by Keshala Dias

27 Mar, 2017 | 7:33 pm

Did anyone have advanced knowledge of the amount offered at the bond auction that led to much controversy?

Giving evidence before the Presidential Commission of Inquiry, Deputy Governor of the Central Bank of Sri Lanka P. Samarasiri said, after looking at the pattern of the bids placed on the 27th of February 2015, he believed that people outside the Public Debt Department may have had advanced knowledge on how much was on offer.

Samarasiri says, if anyone has information about an auction they would make a bid at the last moment of the auction.

On the matter of the impugned treasury bond action, Samarasiri said that by looking at the pattern of the bids placed on the EPF was placed at a lower position where as on previous auctions, the EPF is placed at a higher position.

He also disclosed before the Commission that the bond auction in question was marred with impropriety adding that the Public Debt Department framework was weak at the time.

Responding to a question raised by the Commission on addressing concerns on the functions of the PDD, the Deputy Governor said he raised the matter with then Governor Arjuna Mahendran, however no action was taken.

Samarasiri also revealed that the top tier supervision of the PDD at the time were new comers.

During the examine of evidence, Samarasiri was also critical on the Direct Placement method followed in the issuance of bonds.

It was also revealed before the Commission, the IGP has failed to respond to a request made by Justice K. T. Chithrasiri from the IGP to release Senior ranked officers for the functions of the Commission.

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